NATURAL RESOURCES

An oil opportunity has become available including 15 acres of a lease for $105,000. This would equate to 1.1719% of interest in all of the wells drilled. Our share of the costs of the first four wells would be approximately $340,000. The total cost of the lease and the first four wells would be approximately $445,000.

Four wells are set to be drilled year one and the following estimations provide a possible return on investment for $50/barrel oil WTI (average) which equals $45/barrel oil ND Crude.

EXAMPLE 1

Well #1 will produce approximately 216,000 barrels of oil in the first year. At $45 per barrel, that would produce $91,127 of revenue in Year 1.

EXAMPLE 2

Since there are 4 AFEs for wells all within the first year, they would potentially produce 864,000 barrels of oil and $364,508 of revenue in Year 1.

Expenses for this scenario include the cost of the lease, drilling of 4 wells, and 5% JIB expense to total approximately $571,661. These expenses would all be covered by the initial $445,000 investment and oil revenue.

Total barrels of oil for these 4 wells throughout the first year is approximately $ 864,000. At $50/$45 (WTI/ND Crude) oil average throughout this time period, total revenue would be approximately $364,508.

Note - On average, wells in the Bakken produce oil for 30-40 years. The average amount of wells per pad are 8-16.

TOTAL RETURN

$454,304

PROJECTED ANNUAL RETURN

Year 1 | $346,282

Year 2 | $192,379

Year 3 | $10,292

Year 4 | $128,253

Year 5 | $76,952

TOTAL RETURN

$754,158

These numbers follow the estimates on the narrative including a Net Revenue Interest of 0.011719, an initial recovery of 20,000 barrelsa month to start, and four AFEs being drilled in a one year span. It also takes into account the expenses associated with this investment including the AFEs, 80% ownership in oil retreived, $5 discount for ND Crude, Refracking, and JIB expenses.

THE BAKKEN — UNPRECEDENTED OPPORTUNITY

TECHNOLOGY INOVATIONS

New innovations in drilling technology allow operators in the Bakken
to take full advantage of the formation. These technologies allow for
cheaper and more efficient oil extraction which saves money and time.
The Bakken’s potential can be fully realized, which means higher prosperity
for all interests involved directly or indirectly in a range of industries.

2018

HORIZONTAL DRILLING

Horizontal drilling has opened up shale formations like the Bakken for exploration. Shale rock has many small, vertical fractures. Drilling horizontally reaches more of the natural cracks in the rock where the oil and gas are. Drilling horizontally exponentially increases the area that can be accessed for a fraction of the land used, decreasing the surface impact while resulting in significantly greater economic production.

HYDRAULIC FRACTURING & COMPLETION

Shale rock naturally has small fractures in it, but they are too small for oil to flow to these areas. To open these cracks, well operators pump water and sand into the well under high pressure to crack the rock whereby the sand fills the small cracks and props them open for the oil to escape. This process happens 10,000+ feet below the surface with as many as five layers of cement and steel lining the well to protect groundwater.